The Nissan Leaf, presently one of the most affordable electric cars in the U.S. at a starting price of $28,140 before incentives, may undergo a pricing shift with the arrival of its next generation, according to a report by Automotive News.
Sources suggest that Nissan plans to cease production of the budget-friendly hatchback EV at its Smyrna, Tennessee factory by mid-2025, with no immediate plans for a resumption of production in the United States. Earlier statements from the Japanese automaker indicated that the next-gen Leaf would be manufactured at its Sunderland plant in the United Kingdom from 2026 onward. However, details regarding the export markets for the new EV have yet to be disclosed.
By importing the Leaf into the U.S., Nissan risks limiting its customers’ access to the up-to-$7,500 tax credit applicable to battery-powered cars manufactured in North America. To maintain competitiveness, the logical step would be to reduce the selling price. However, analysts caution that this move is intricate, as a lower-priced EV without the tax credit might necessitate a significant price drop, impacting profitability and incurring losses on each vehicle sold, according to Sam Fiorani, vice president at AutoForecast Solutions.
While the existing Leaf, introduced in 2017, has retained affordability by leveraging established technology, the forthcoming next-gen model is anticipated to offer advancements. Drawing inspiration from the 2021 Nissan Chill-Out concept, the new Leaf is expected to utilize the CMF-EV platform, shared with the Nissan Ariya, and feature a dual-motor all-wheel-drive system.
The Ariya’s drivetrain boasts up to 389 horsepower, a notable increase from the current Leaf’s front-wheel-drive platform with a maximum output of 215 hp. Despite the enhanced performance and technological features, the absence of a tax incentive could potentially lead to a higher price tag in the U.S. market. The final assessment of the trade-off between increased capabilities and potential price adjustments remains to be seen.